Studies On Pricing Of Reactive Power Ancillary Services Considering Resource Value Of Reactive Power

Reactive power service is a significant part of ancillary service in the power market. With the deep development of reformation to the power market, the reactive power ancillary service and the method of pricing reactive power has become a highlight topic. The question is focused on how to get the proper reactive power price, because the proper price can meet the profits of both the reactive power producers and purchasers, encourage the competition among the reactive power producers, reduce the production cost, and form the regulation of reactive sources investigation and efficient use of devices.This paper addresses the content and items of reactive power service and reactive power market. Objects which reactive power price should attain in making it are proposed. Three facets of the price system are analyzed in reactive power market. Based on the operation area of generators, the paper gives the analysis to cost of the reactive power of synchronism generators and the reactive compensation device. Reactive power value is studied. Three methods have been used to measure the value of reactive power and these ways are compared in several aspects. The method of ERC is improved to measure the difference among reactive resources. The demonstration in the simulation shows that the improvement gives a better way to assess the value of reactive resources. An average method is proposed to define reactive value factors which are introduced to the OPF model. Then the pricing model of reactive power is presented which involves both reactive power cost and adjustment of reactive power value factors. The simulation result in the Wald-Hale 6-bus system and IEEE 14-bus system shows this model makes the system get more reactive power from generations that have larger value and it also doesn't increase reactive procuring cost and loss.